Verizon's shares experienced a minor upward movement today.
Verizon Communications' (VZ decreased by 0.67%) major developments on Wednesday were predictable yet welcomed. This led to an improvement in the company's stock performance. Verizon's shares concluded the trading session with a rise of nearly 2%, contrasting the stationary S&P 500 index.
Greetings to a valuable addition
During this period of significant elections, Verizon's updates revolved around a shareholder decision. Investors of Frontier Communications Parent (FYBR increased by 0.26%) were consulted in a special shareholders meeting regarding whether to approve or reject Verizon's acquisition of their company. The majority voted in favor, as per a press release. Frontier reported that approximately 63% of the respondents chose "yes."
This paves the way for the acquisition, which was publicly announced at the beginning of September. Verizon and Frontier agreed to a complete cash purchase of Frontier for approximately $20 billion.
Verizon's intent behind buying Frontier is to own its fiber network properties. In the initial statement announcing the deal, Verizon mentioned, "This strategic acquisition of the largest U.S. fiber-optic internet provider will considerably widen Verizon's fiber reach throughout the country, accelerating the company's delivery of superior mobility and broadband services to its existing and new customers."
The purchaser anticipates that owning Frontier will boost both its revenue and non-GAAP (adjusted) EBITDA after the transaction's completion. No financial forecasts were offered.
Now, down to business
Notwithstanding this, as is customary in such situations, Verizon shareholders are pleased to learn that the (potentially advantageous) deal has been approved by the other party's investors. Nevertheless, Frontier is a substantial undertaking, and Verizon will be responsible for seamlessly incorporating it into its current operations.
Following the approval of Verizon's acquisition of Frontier Communications, investors are now considering the potential impact on their finance portfolios. This significant move in the finance sector could potentially yield high returns through investing in Verizon's stocks.
To successfully execute this acquisition, Verizon will need to allocate ample funds, which will require careful financial planning and management of their money resources.
